Residents of Breslau, Ontario, who are facing a bill nearing $14,000 per household for sewer and water work completed on their street nearly a decade ago, have been granted an extension on their payment deadline, with waived interest for those opting for a 20-year payment plan.
During a council meeting on Tuesday night, Woolwich Township officials engaged in a lengthy discussion with affected residents regarding the bill.
Mayor Sandy Shantz expressed her understanding of the “worry and frustration” this situation has caused residents.
“I recognize how stressful this can be, and I want you to know that we hear your concerns and understand how challenging this has been for families,” she stated.
“We acknowledge the difficulties you are facing. We are dedicated to working alongside you. Your worries are important, your voices matter, and we will do everything in our power to assist you.”
Last week, 25 homeowners received a notification from the township, indicating that each household was required to pay $13,950.19 to cover the total cost of the project, which amounted to $348,754.75.
In 2014, 77 percent of neighborhood residents voted in favor of extending water and sewer services to their homes. The township later entered litigation with the construction firm after the project was completed in 2016.
This legal dispute did not conclude until 2024, which is the reason residents are receiving bills at this time, according to the township.
Initially, residents were given until December 12 to pay the bill in full or opt to include it in their tax bill, allowing them to pay annual installments of $1,286.25 over the next 20 years at a 6.7 percent interest rate.
On November 14, the township informed residents they had until December 19 to communicate their payment method, and they extended the deadline for full payment until the end of May 2026.
During the meeting, the township acknowledged that it should have communicated better regarding the impending charge.
Woolwich council engaged with affected residents and discussed the bill extensively during a meeting on November 18. (Township of Woolwich YouTube)
Residents raised concerns with council
Mark Schmidt represented his neighbors from Woolwich Street South—one of four streets affected by the recent billing—when he addressed the council.
He expressed to the council that the time allowed for residents to choose a payment option was insufficient. He also voiced concerns about the interest rate associated with the 20-year payment plan, indicating the total amount paid would effectively double.
“That adds up to $25,725. It’s a considerable sum,” he remarked. “Essentially, it’s almost double, largely due to the excessive 6.7 percent interest rate being offered.”
Schmidt read several questions from his group directed at the council regarding the process that led to the bill. These inquiries pertained to the legitimacy of the bylaw that imposed the costs on residents and requested the council to disclose how the resident vote was conducted in 2014 regarding the work.
The group ultimately requested the council to revoke the bylaw and extend the payment deadline by six months.
The council deliberated on the matter, with staff providing answers about the process that resulted in the levy bylaw, the established interest rate, and the reasons behind the township’s litigation against the construction company once the project was finalized in December 2016.
Township unable to absorb costs
Councillors Evan Burgess and Bonnie Bryant proposed a motion for the township to cover the entire cost, citing fairness for failing to properly communicate the bill to residents over the past nine years.
The motion also called for staff to create a policy to prevent similar issues in the future.
“This entire cost recovery process has been frustrating and unacceptable on multiple levels,” Burgess commented.
“This is my first term on council, yet I have repeatedly witnessed errors made by staff, with residents bearing the financial burden.”
Burgess suggested that the funds to cover the costs could be sourced from the township’s infrastructure reserve fund.
Councillors Nathan Cadeau, Kayla Grant, and Eric Schwindt expressed concerns regarding the township absorbing the costs, indicating it might hinder funding for other essential projects and potentially lead to a rise in property taxes.
“As a township, we have fallen short in our communication and service to residents, and we must acknowledge this and apologize for it, while exploring ways to assist,” Schwindt added.
“We cannot waive the full amount because, when we review our budget, it is evident that this township does not have an extra $300,000 to allocate.”
He mentioned he would support waiving the interest for residents who wish to participate in the 20-year payment plan and extending the payment time frame, a sentiment echoed by other councillors.
Despite Burgess’s and Bryant’s motion being voted down 4-2, the council agreed to develop a policy to prevent similar situations in the future.
Waived interest rate and extended payment period
Coun. Schwindt proposed a motion to waive the interest rate and to extend the deadline for residents to notify staff of their payment method and the full payment deadline.
“That is the least we can do,” he stated.
Schwindt’s motion was approved unanimously.
Breslau residents now have until May 1, 2026, to inform staff of their chosen payment method and until September 2026 to settle the bill in full.
